My credit cards are so boring. I’ve had them forever, I pay too much for the privilege of using them and they’re quite underwhelming in what they give back. I’m thinking of breaking up with them.

This malaise set in on my return from a recent overseas trip with those bad-boy cards during which I’d given them quite a spanking. On sizing them up relative to what I had to give, I just wasn’t feeling the love I thought that I should have received from my card providers.

So I couldn’t help but be distracted by a new Emirates-Citibank tie-up that caught my eye the other day. Their new World MasterCard teased and tantalised with its promise of chauffeur-driven rides and a sexy VIP concierge service. As I delved further into what other players offered in this fast-moving crowd of high-end cards, it quickly became apparent I was going to be spoilt for choice.

Along with Citibank, American Express,
ANZ
and
Westpac
jostle for bragging-rights cachet among high-end travellers. Just having these cards enables holders to earn privileges such as free foreign currency transactions, complimentary return international flights and access to VIP airport lounges globally.

I wasn’t going to be quick in dumping my old-faithful, however, just to jump into bed with some hot new thing. I know the grass is very rarely greener.

Premium all the rage

Premium credit cards are all the rage in Australia, accounting for nine out of 10 new cards this year as issuers try to produce the Louis Vuitton of “plastic fantastic".

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There’s a sting in this tale, however. Our seemingly insatiable hunger for the show-off card has driven up average credit card interest rates to 17.3 per cent – almost seven times Australia’s current cash rate.

As a nation, our appetite for debt has decreased in recent years, a circumstance that has driven some pretty heavy competition among credit card providers at both ends of the market,
Kirsty Lamont
, director of online financial product comparison company Mozo, says.

There’s a real war when it comes to balance-transfer offers and a lengthening of balance-transfer periods. At the other end of the market, she says card providers are targeting big spenders with growing premium offerings.

“Three years ago, premium cards accounted for one in 10 cards," she says. “Now, platinum cards account for about a third of the overall credit card market. People love that they can get free travel insurance, extended purchase and warranty protection, waived foreign-transaction fees and concierge services."

Such things were once the preserve of the coveted Amex Centurion Card, black, titanium and still one of the most impressive things one can whip out of the wallet.

“Five years ago, gold was the luxury card," Lamont says."That’s been well replaced now as providers have moved to platinum, diamond.

Suckers for compelling marketing?

“There are a lot of people out there who want them."

But are these people just suckers for compelling marketing?

“They fall for them thinking they’ll get a lot of value out of them. But they really have to make sure they’re using those perks and making the best of all the benefits on offer."

For those carrying any debt, there’s absolutely no point having a premium card. As soon as you have to pay interest, the cost is likely to outstrip the perks.

So what are the picks of the pack? It depends on what you want in your ideal match, Lamont says.

“[The cards] are all different, and it’s really up to cardholders to evaluate them very carefully and pick the one they’re going to get the most use out of [relative to] their annual fee," she says.

If you’re into points – and “Australians are absolutely obsessed with them" – Westpac’s Altitude Black card will probably blow your hair back with its “3 points per dollar spent" overseas. The 1.25 point per dollar spent locally is on par with, or better than, the best of the rest.

Prospect of fast-tracking

Both Westpac Blacks offer the prospect of fast-tracking holders to elite membership status within the Starwood group of hotels and resorts globally, which would open doors in such brands as the Westin, Sheraton and St Regis properties.

For those who just want to be a mile high up at speed, complimentary flights may represent the most value. American Express’s Platinum Reserve card is a standout here with its free international return flights.

That deal can be swapped out either for a domestic round-trip, or a night’s stay in a luxury hotel. But beware of the word “selected" here, it’s used by providers to stipulate the designations open to negotiation or luxury hotels that are part of the deal. I’m told it can be tricky to lock into what one really wants, when they want it.

I’m not sure how you’d get around that, other than by booking early, and booking often – certainly every year, if one hopes to counteract those nasty annual fees, which sit around $400 and beyond in most cases.

It’s worth noting that most of these cards have an introductory bonus-points offer, which might be worth taking into account. But you’d be nuts to take out a card solely on the strength of such an offer.

First impressions do matter, but the first flush of romance rarely lasts.